FDIC stands for Federal Deposit Insurance Corporation. A bank account that is FDIC-insured means that your money is insured by the federal government, usually up to $250,000.
What you should know:
- If a bank fails and cannot give all of its customers the money in their accounts, the FDIC makes sure they are paid.
- When choosing a bank, make sure to pick one that is FDIC insured, and choose types of accounts that are covered.
- FDIC covers checking accounts, savings accounts, and several other types of bank accounts. Check with your bank to confirm your account will be covered.